Consumer Proposals
Reduce unsecured debt, stop interest and consolidate your payments into one affordable monthly amount without declaring bankruptcy.
- Keep most assets
- Stop most collection actions
- Make fixed, interest-free payments
Bankruptcy Canada – Consumer Proposals, Bankruptcy & Debt Relief with Licensed Insolvency Trustees
Explore Debt Solutions to Help You Get Out of Debt
Struggling with debt in Canada? Bankruptcy Canada connects you with Licensed Insolvency Trustees (LITs) across the country to help you explore debt relief solutions such as consumer proposals, personal bankruptcy, debt consolidation and credit counselling.
Get clear, Canadian-specific advice and a plan to become debt-free.
Book a Free, Confidential Consultation
Talk directly with a government-licensed insolvency trustee — no obligation, no judgment.
What Bankruptcy Canada Does for Canadians Facing Debt
Bankruptcy Canada helps Canadians get out of debt through consumer proposals, personal bankruptcy, debt consolidation and credit counselling, delivered by federally licensed insolvency trustees across Canada.
BankruptcyCanada.com is a trusted resource for Canadians who feel overwhelmed by debt. We help you understand your options under Canada’s Bankruptcy and Insolvency Act and connect you with a Licensed Insolvency Trustee, the only professional in Canada legally authorised to file a consumer proposal or bankruptcy on your behalf.
Whether you are dealing with credit card debt, tax debt, student loans, payday loans or other unsecured debts, we provide clear, step-by-step guidance so you can choose the solution that fits your income, assets and goals.
What Is a Consumer Proposal in Canada?
A consumer proposal is a legally binding agreement where you work with a Licensed Insolvency Trustee to offer your creditors a reduced repayment — often a fraction of what you owe — through fixed, interest-free monthly payments over up to five years. You usually keep your assets, stop most collection actions, and avoid bankruptcy. Learn more in our Canadian Consumer Proposal Guide.
What Is Personal Bankruptcy in Canada?
Personal bankruptcy is a formal insolvency process that may discharge most unsecured debts more quickly than a proposal, but it can involve surrendering non-exempt assets and carries a stronger impact on your credit. For many Canadians, bankruptcy is a last resort — but in some situations it is the most effective way to reset. Explore our detailed guide to Personal Bankruptcy in Canada and the advantages of bankruptcy.
For an official comparison of debt solutions in Canada, see the Government of Canada’s overview: Compare Debt Solutions – Office of the Superintendent of Bankruptcy.
Why Canadians Trust Bankruptcy Canada
- Canadian focus: Our resources are written specifically for Canadians, based on Canadian law and current practices.
- Trustee-reviewed content: Many of our articles are prepared and reviewed by Licensed Insolvency Trustees who work with real clients every day.
- Real solutions, not sales pitches: We explain all options — budgeting changes, consolidation, credit counselling, consumer proposals and bankruptcy — so you can make an informed decision.
- Free, confidential consultations: You can speak with a trustee at no cost to understand your choices before you commit to anything.
To learn more about who we are and how we help, visit our About Bankruptcy Canada page.
How We Help You Get Out of Debt
Every person’s situation is different. Here are the main debt relief options we help you explore, compare and understand.
Personal Bankruptcy
Eliminate most unsecured debts through a formal bankruptcy process when your income and assets cannot support other solutions.
- Potentially fastest path to discharge
- May impact some non-exempt assets
- Stronger effect on your credit (R9)
Learn more about filing bankruptcy in Canada and bankruptcy costs.
Debt Consolidation & Other Options
If you still have good credit, a consolidation loan or credit counselling program may help you pay debts in full at a lower interest rate.
- Combine multiple payments into one
- May require strong credit and income
- Usually does not reduce principal owed
Compare all your choices in our Debt Relief in Canada guide.
Who We Help
We assist Canadians from all walks of life who are overwhelmed by unsecured debt, including:
- Individuals juggling multiple credit card balances and payday loans
- Homeowners worried about tax debt and CRA enforcement
- Graduates carrying student loan debt they can’t repay
- Families struggling with lines of credit, overdrafts and consumer loans
- Self-employed Canadians dealing with business-related personal debts
If you’re unsure where to start, our Debt Help in Canada page walks through first steps and key questions to ask.
How Working with a Licensed Insolvency Trustee Works
- Free, confidential consultation
You speak with a Licensed Insolvency Trustee who reviews your income, debts and assets and explains all options — not just bankruptcy. - Clear explanation of your choices
Together, you compare consumer proposal vs bankruptcy, debt consolidation and other approaches. You’ll see estimated costs, timelines and credit impact for each. - Customized plan
If a consumer proposal or bankruptcy is appropriate, your trustee prepares the documents and files them with the Office of the Superintendent of Bankruptcy, triggering legal protections. - Support until you’re debt-free
Your trustee administers your plan, collects payments, deals with creditors and provides required financial counselling to help you stay on track.
For an official explanation of the trustee’s role, see the Government of Canada’s pages on consumer proposals and bankruptcy.
BANKRUPTCYCANADA
Get Your Free Consultation With a Licensed Debt Relief Expert Now!
Find out how you can quickly get out of debt by setting up a free consultation with us today.
Find Your Debt Relief Solution in 3 Simple Steps
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Expert for Free
Managing debt can be a source of stress. Our commitment is to provide clients with expert advice through friendly and non-judgmental consultations. Our consultations are free with no upfront fees, ensuring there is nothing to lose. Receive the professional debt relief advice you deserve from us!
Review Your
Options
Our team of professionals will collaborate with you to create a customized debt-relief plan that perfectly suits your requirements. This plan will alleviate your stress and concerns, allowing you to explore the various options available to you such as a consumer proposal, personal bankruptcy or debt consolidation.
Get Out of Debt
Fast With Our Support
We are committed to supporting you throughout the entire process, providing you with a dedicated expert counselor who will assist you every step of the way. From the initial stages to the ultimate resolution, our goal is to help you eliminate your debt as efficiently and quickly as possible.
Receive a Free Assessment of Your Debt & Guidance on How to Eliminate it
- Clarification of the alternatives available to you.
- Tailored strategy for managing your debt.
- No charges and no requirement to act.
- Private and secure.
- Gain a broader perspective on how to get out of debt and put your mind at ease.
- Book a complimentary consultation with a licensed and proficient insolvency trustee immediately.
Why Choose Bankruptcy Canada on Your Path to Debt Freedom?
A Licensed Insolvency Trustee (LIT) is the sole professional authorized by the Canadian government to administer both Bankruptcy and Consumer Proposal. As a consumer, you can have confidence in the expertise, knowledge, and experience of a Trustee in assisting you in resolving your debt issues.
If you are burdened by debt and seeking information, we invite you to explore our website’s extensive collection of articles, which have been prepared and reviewed by Trustees. Here, you will find answers to many of your initial inquiries.
Additionally, BankruptcyCanada can connect you with a Licensed Insolvency Trustee in your vicinity. We collaborate with reputable firms throughout the country. Familiarize yourself with the information available on our website, and then allow a Trustee to guide you through the subsequent steps. Achieving a better financial future is within reach.
Your initial consultation will be free of charge.
Answers to Common Questions About Debt Relief in Canada
Will I lose my home if I file a consumer proposal or bankruptcy?
In a consumer proposal, most Canadians keep their home as long as they continue making mortgage payments and the proposal offers creditors at least as much as they would receive in a bankruptcy. In bankruptcy, whether you keep your home depends on provincial exemptions, your equity, and the structure of your case — your trustee will walk you through the details.
How will a consumer proposal or bankruptcy affect my credit?
A consumer proposal typically appears as an R7 on your credit report and remains for a period after completion. Bankruptcy is reported as an R9 and generally remains longer. The trade-off is between the level of relief you need now and how long you are prepared for your credit to be affected. Our guide to the effects of claiming bankruptcy explains this in detail.
Can I deal with tax debt and student loans through a consumer proposal?
Many types of tax debt owed to CRA and some government student loans can be included in a consumer proposal or bankruptcy, depending on timing and specific rules. Your trustee will review each debt and explain your options.
How do I know which option is right for me?
There is no one-size-fits-all answer. The best approach depends on your income, assets, family situation and goals. A Licensed Insolvency Trustee will compare each option side by side — including staying the course, consolidating, a consumer proposal, or bankruptcy — so you can choose the path that gives you the best balance of debt relief, asset protection and long-term recovery.
For more questions and answers, visit our full Bankruptcy & Consumer Proposal FAQ or explore our latest articles on the Bankruptcy Canada Blog.
Take the Next Step Toward Becoming Debt-Free
You don’t have to navigate debt alone. A short conversation with a Licensed Insolvency Trustee can help you understand your rights, your options, and the specific steps to get out of debt in Canada.
- Free, confidential consultation
- Available across Canada
- No pressure to sign anything
Prefer to learn more first? Start with our in-depth guides to consumer proposals in Canada and personal bankruptcy.
Discuss options to get out of debt with a trained & licensed debt relief professional.